A U.S. traveler will spend SF 5, 000 in Switzerland in three months time. The three month forward rate is F3($/SF) = 0.63. A three month call option worth SF 5, 000 with an exercise price of E($/SF) = 0.64 has a premium of c($/SF) = 0.02. The U.S. interest rate is 6% per year. (a) Compute the dollar cost if the traveler uses the forward contract to hedge. (b) Compute the future value of the dollar cost if the traveler uses the option hedge, for ST($/SF) = 0.60 and ST($/SF) = 0.66. (c) Compute the breakeven spot rate.